ACQ1010 Module 5 Questions with 100% Correct Answers

Budget Authority (BA) Correct Answer Authority provided by law to enter into obligations that will result in immediate or future outlays. In the program office, prior to releasing a Request for Proposal (RFP), the comptroller must verify that you have sufficient BA in the correct appropriation and fiscal year. Commitment Correct Answer Is the administrative reservation of funds usually by the local comptroller, in anticipation of a future obligation. A commitment is the response to a request for a spending action and ensures that funds are available in the amount requested, correct FY, and proper appropriation. Obligation Correct Answer Is the legal reservation of funds to make a future payment of money. Expenditure Correct Answer Is a charge against available funds and results from a voucher, claim, or other document approved by competent authority. Outlay Correct Answer Occurs when the vendor cashes the expenditure check and money flows from the Treasury to the vendor or supplier. Defense Staff Level Correct Answer At this level cost estimate is referred to as an Independent Cost Estimate. Component Headquarters Level Correct Answer At this level cost estimate is referred to as Component Cost Estimate. Program Level Correct Answer At this level cost estimate is referred to as Program Office Estimate. Program Office Estimate (POE) Correct Answer Is prepared in support of program initiation and for subsequent decision reviews. This estimate is based on requirements by DoDI 5000.02, which requires the program office to prepare a LCC estimate for all ACAT I and ACAT IA program, which should cover all costs from program initiation through disposal. For ACAT II and III programs, cost estimates will be forwarded through Service's Assistant Secretary for Financial Management then to one of the following -- Navy Program Decision Meeting (NPDM), Air Force system Acquisition Review Council (AFSARC), and Army Systems Acquisition Review Council (ASARC).